Net Income $5,000 Depreciation 2,500 increase in deferred tax liabilities 500 Decrease in account receivable ...

Net Income $5,000

Depreciation 2,500

increase in deferred tax liabilities 500

Decrease in account receivable 2,000

increase inventories 9,000

Decrease in Account Payable 5,000

increase in accrued liabilities 1,000

increase in property and equipment 14,000

increase in short term notes 19,000

decrease in long term bonds 4,000

Use the information above to answer the questions below

What is the net cash flow from operating activities
What is the net cash flow from investing activities
What is the net cash flow from financing activities?
What is the change in cash?

Expert Solution

Cash Flow from Operating Activity
	Particulars	Amount
	Net Income		5000
Add:	Depreciation	2500
Add:	Increase in Deffered Tax Liab.	500
Add:	Decrease in Accounts recievable	2000
Add:	Increase in Accrued Liab	1000
Less:	Increase in Inventory	9000
Less:	Decrease in Account Payable	5000	-8000
	Net Cash Flows from operating Activities	-3000

Cash Flow from Investing Activity
	Particulars	Amount
	Increase in property & equipment	-14000
	Net Cash Flows from Investing Activities	-14000

Cash Flow from Financing Activity
	Particulars	Amount
	Increase in Short Term Notes	19000
Less	Decrease in Long Term Bonds	4000
	Net Cash Flows from Financing Activities	15000

Change in Cash
	Particulars	Amount
	Net Cash Flows from operating Activities		-3000
Add:	Net Cash Flows from Investing Activities	-14000
Add:	Net Cash Flows from Financing Activities	15000

Change in Cash	-2000

jeff jeffy answered 1 year ago

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Question

Net Income $5,000 Depreciation 2,500 increase in deferred tax liabilities 500 Decrease in account receivable ...

Solutions

Expert Solution

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